USDCAD stuck in range after advance gets rejected

USDCAD has been in a steady uptrend after bouncing off its 2023 low of 1.3262 in late January. However, the pair experienced a pullback and has been trading sideways since the 1.3850 ceiling capped its upside trajectory.

The short-term oscillators currently suggest that the positive momentum is waning but the bears have not taken control yet. Specifically, the RSI is pointing downwards above its 50-neutral mark, while the MACD histogram has softened below its red signal line in the positive region.

If this latest downside correction resumes, the price could encounter support at the recent low of 1.3650. Diving beneath that zone, the 1.3515 hurdle, which has acted as both support and resistance multiple times in the past few months, might provide downside protection. Should that barrier fail, further declines could cease at the February support of 1.3440.

On the flipside, bullish actions may send the price to challenge 1.3810, which also held strong last November. Conquering this barricade, the bulls could then target the recent  trend-rejection region of 1.3850. A break above the latter could set the stage for the 34-month high of 1.3976.

In brief, USDCAD has been rangebound in the last few daily sessions, appearing unable to extend its recent advance. Therefore, a break above the 1.3850 rejection territory is needed for the continuation of the pair’s uptrend.

About the author

Stefanos Oikonomidis

Stefanos bergabung XM sebagai Analis Junior pada September 2021. Ia melakukan riset pasar harian pada mata uang, komoditas dan pasar ekuitas, dari perspektif fundamental dan teknis. Sebelum bergabung di XM, ia memperoleh wawasan berharga dengan bekerja sebagai Pekerja Magang Risiko Kredit di bank besar Yunani.

Stefanos meraih gelar Master di bidang Finansial dari Warwick Business School dan gelar Sarjana di bidang Akuntansi dan Finansial dari Athens University of Economics and Business. Ia percaya bahwa untuk menjadi sukses di industri, Anda harus bisa mengidentifikasi kekuatan pendorong di balik setiap pergerakan pasar, dan dibahas secara jelas dengan para pembaca.